Amid memory shortages and rising costs, Samsung and Apple defy market decline, gaining share as global smartphone shipments fall.
Global smartphone shipments fell 4.1% year-on-year in the first quarter of 2026, ending a ten-quarter growth streak, according to preliminary data from International Data Corporation (IDC). Shipments totalled 289.7 million units, down from 302 million in the same period last year, as memory supply shortages and record-high component prices weighed on demand.
IDC analysts said limited memory availability forced manufacturers to reduce shipments, while sharply higher prices pushed up costs and led to price increases across many markets.
In some emerging economies, handset prices rose by 40–50%, dampening demand in price-sensitive segments. Vendors responded with tighter cost controls, reduced marketing, and deeper strategies, but these measures also constrained growth.
Despite the downturn, Samsung and Apple were the only two of the top five smartphone companies to record year-on-year growth. Samsung reclaimed the leading position, with shipments rising 3.6% to 62.8 million units, driven by strong demand for the Galaxy S26 Ultra and earlier A-Series releases. Apple followed closely with 61.1 million units, up 3.3%, supported by robust sales of the iPhone 17 series, particularly in China.
Chinese manufacturers faced mixed results. Xiaomi, in third place, saw shipments fall 19.1% as it cut back older models to avoid steep price hikes. OPPO, ranked fourth, posted a 9.9% decline, while vivo, in fifth, dropped 6.8% but maintained strong positions in China and India. Outside the top five, Honor recorded notable growth of 24% year-on-year, aided by overseas expansion.
IDC warned that the decline could deepen as memory constraints persist, with emerging markets most exposed to rising costs. Analysts expect average selling prices to continue climbing, with premiumisation trends likely to dominate until memory prices stabilise, projected for the second half of 2027.
